NorthStar Realty Finance Announces Definitive Agreement to Acquire $1.1B Hotel Portfolio

NorthStar Realty Finance Corp.

("NorthStar Realty") today announced that it has entered into a definitive agreement to acquire a $1.1 billion hotel portfolio (the "Portfolio") from Inland American Real Estate Trust. The Portfolio is comprised of 52 upscale extended stay and select service hotels with approximately 7,000 rooms. Inclusive of this portfolio and an additional approximately $700 million hotel portfolio that NorthStar Realty expects to close this month, NorthStar Realty will have an approximately $3.2 billion hotel portfolio consisting of 159 hotels and over 20,000 rooms. NorthStar Realty is acquiring the Portfolio in a joint venture with Chatham Lodging Trust ("Chatham", NYSE: CLDT) where NorthStar Realty will have an approximate 90% ownership interest in the Portfolio and Chatham will own an approximate 10% minority interest. Island Hospitality is expected to manage a substantial majority of the hotels in the Portfolio. NorthStar Realty's Chairman and Chief Executive Officer, David Hamamoto, commented, "We are excited about the continued expansion of our portfolio of extended stay and limited service hotels and the deepening of our relationship with Chatham and Island Hospitality. This portfolio is expected to generate strong risk-adjusted returns for our shareholders and provides NorthStar Realty with substantial optionality, scale and diversification in a sector that we strongly believe will continue to benefit meaningfully from a growing economy."